Interim Results

RNS Number:2859L
Hacas Group PLC
20 May 2003


                           HACAS Group PLC ("HACAS")
   (The leading UK social housing consultancy with offices in London, Leeds,
                             Glasgow and Coventry)

          UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 31 MARCH 2003


HIGHLIGHTS

Six months to 31 March:                    2003           2002          Change

Turnover                                  #8.14m         #6.82m            +19%
Profit before tax                         #2.39m         #1.68m            +43%
Earnings per share (basic)                 5.56p          3.87p            +43%
Dividend                                   0.85p         0.675p            +26%


*     Better than expected contribution from SDP Regeneration Services
*     Strong organic growth in most business streams
*     Discussions which may lead to an offer being made for the Group


For further information:
Julian Ashby (Chairman)                                020 7609 9491
Derek Joseph (Managing Director)                       020 7609 9491
Oliver Scott (KBC Peel Hunt)                           020 7418 8900


Background note

The Market

The social housing sector is the Group's primary operating market. The sector
comprises housing associations, local authority and other public sector housing
providers together with the related government departments, regulators, trade
bodies, suppliers and funders. This sector comprises about 20% of the UK's
housing stock.

Government policy encourages area regeneration and substantial investment in
repairing and modernising local authority housing. For more than one hundred and
fifty authorities this involves the transfer of housing stock to a new or
existing housing association and substantial funding from the commercial loans
market. Other councils are setting up Arm's Length Management Organisations and
a variety of partnership bodies. Advice to local authorities and such new
housing organisations is a key area of the Group's work.

The HACAS Group and its clients
The HACAS Group comprises three main operating companies of which HACAS Chapman
Hendy Ltd is the largest. These companies advise over 120 local authorities
including some of the largest (such as Glasgow and Bradford). They also advise a
majority of the largest housing associations. Our 500 most regular housing
association clients hold assets ranging between #50 million and #1.4 billion.
Other clients include government departments, The Housing Corporation, Scottish
Executive and National Assembly for Wales, Northern Ireland Housing Executive,
National Audit Office and the Audit Commission.

The Group carries out research for government departments and regulators and
also advises financial institutions, commercial companies involved in the social
housing sector, as well as Eastern European governments.

HACAS Chapman Hendy Ltd

HACAS Chapman Hendy is the main operating company and was formed from the merger
of HACAS Consulting and Chapman Hendy Associates in 2000. It provides a wide
range of consultancy and outsourcing services to local authorities, housing
associations and other organisations operating in the social housing sector.

The company is now organized into the following eight consultancy teams:

Local authority (finance, regeneration & transfers)
Housing association finance and commercial
Finance Director placements
Best value and other housing association services
North team (full range of services from Leeds base)
Asset management services
Human Resources
Information Technology

SDP Regeneration Services Ltd is the new company formed to take over the
business of Stratford Development Partnership. It administers many of London's
Single Regeneration Budget programmes and supports six of the New Deal for
Communities programmes. It has a growing consultancy workload that fits well
with the range of regeneration initiatives undertaken by HACAS Chapman Hendy
Ltd.

HACAS Exchequer Services Ltd is FSA registered and advises housing associations
and local authorities on funding and treasury management. It is active in the
stock transfer market and in advising on the refinancing of existing housing
debt. It has recently developed new special purpose treasury vehicles for
housing associations and this innovation has strengthened demand for its
services.

HCH Scotland Ltd operates from Glasgow and provides a wide range of services to
Scottish housing associations, local authorities and other clients.

The Royal Borough of Kensington and Chelsea Assured Homes PLC was established
under the Business Expansion Scheme in 1990. The Directors have taken advantage
of the strong property market to sell most of the portfolio.


Chairman's Statement

Results

We are pleased to report interim results that show a significant increase on the
comparable period last year and reflect the benefits of organic growth and the
recent acquisition of SDP Regeneration Services Ltd. Turnover is up 19%, profits
before tax have increased by 43% and earnings per share by 43%.

Dividend

In the light of the good progress, the Directors have declared an interim
dividend of 0.85p per share (a 26% increase on last year) payable on 26 June
2003 to shareholders on the register at 30 May 2003.

Business Development

Our mainstream consultancy work for housing associations, local authorities and
government agencies has grown in each of these areas. We have won a number of
important contracts in the last six months that demonstrate our increasing role
in regeneration and in work associated with the Audit Commission's comprehensive
performance assessments. These reflect the 'fit' of our work in relation to many
government objectives.

SDP Regeneration Services has performed well and is gradually shifting the focus
of its work towards higher margin consultancy. Our recently strengthened
management arrangements have brought a sharper focus to business stream
performance and growth. This too has been reflected in higher operating margins.

Outlook

Improved performance has continued in the second half which will include a full
six months contribution from SDP Regeneration Services. The second half includes
the summer period when fee revenues are traditionally lower. The demand for our
broad range of services is increasing and we are confident of exceeding our
revenue targets for the year as a whole. We are maintaining our focus on organic
growth. At the same time, we continue to extend our range of consultancy
products and broaden our client base.

Following the announcement made on Friday 16th May, discussions are continuing
which may lead to an offer being made for the Group.

Staffing

We are a people business and our continued success is due to the skill and
commitment of our staff. They have again performed outstandingly well and we
thank them all for their contribution to the company.

Julian Ashby
Chairman
20 May 2003


Unaudited Consolidated Profit and Loss Account
for the 6 months to 31 March 2003
________________________________________________________________________________
                                                      Six Months        Year to
                                                     To 31 March   30 September
________________________________________________________________________________
                                               2003         2002           2002
________________________________________________________________________________

Turnover
Continuing Operations                    8,141,638    6,822,640     13,252,065
Rental income                                2,855        6,197          8,834
Net operating expenses                  (5,847,436)  (5,210,415)   (10,423,646)
________________________________________________________________________________
Operating profit                         2,297,057    1,618,422      2,837,253
Amounts written off investments                  0      (30,000)       (20,000)
________________________________________________________________________________
Profit/(loss) on property disposals              0       (2,508)        (4,129)
________________________________________________________________________________
Investment Income                           94,270       91,138        231,609
________________________________________________________________________________
Profit on ordinary activities            2,391,327    1,677,052      3,044,733
before taxation
Tax on ordinary activities                (718,418)    (537,586)      (981,505)
Ordinary dividends                        (260,816)    (198,787)      (588,410)
________________________________________________________________________________
Retained Profit for the period           1,412,093      940,679      1,474,818
________________________________________________________________________________
Investment properties
Realisation of valuation gains of                0       85,402         85,402
previous years               
________________________________________________________________________________
Earnings per share (basic)                   5.558p       3.869p         7.049p
Earnings per share (fully diluted)           5.401p       3.843p         6.928p
________________________________________________________________________________

Notes:
          
1.   The figures for the year to 30 September 2002 are extracted from the
     audited accounts for the Group.

2.   Earnings per share are based on the following weighted average number of 
     shares in issue:

                                             Issued              Fully Diluted
31 March 2003                            30,099,592                 30,971,272
30 September 2002                        29,271,256                 29,778,867
31 March 2002                            29,450,020                 30,185,591
     
3.   Copies of this statement are being sent to shareholders. Further copies can 
     be obtained from the Secretary at HACAS Group PLC, United House, North 
     Road, London N7 9DP.


Group Balance Sheet

___________________________________________________________________________________
                                    Unaudited at 31 Unaudited at 31   Audited at 30
                                         March 2003      March 2002  September 2002
___________________________________________________________________________________
Fixed assets
Intangible assets                         3,957,066         987,535       1,005,404
Tangible assets                             386,452         278,289         190,544
Investments                                 463,549         155,004         215,004
___________________________________________________________________________________
                                          4,807,067       1,420,828       1,511,759
___________________________________________________________________________________
Current assets
Work in progress                          1,119,186       1,176,428         836,462
Debtors                                   3,716,771       3,655,463       2,203,024
Investments                                  71,949          32,492          54,390
Cash at bank and in hand                  6,078,830       7,116,851       7,728,646
___________________________________________________________________________________
                                         10,986,736      11,981,234      10,822,522
Creditors: falling due within one year    3,518,228       4,455,075       2,714,525
               
___________________________________________________________________________________
Net current assets                        7,468,508       7,526,159       8,107,997
___________________________________________________________________________________
Total assets less current liabilities    12,275,575       8,946,987       9,619,756
Capital and reserves
Called up share capital                   3,068,425       2,945,002       2,951,491
Share premium account                     3,133,329       2,066,129       2,081,537
Revaluation reserve                          11,158          96,560          11,158
Profit and loss account                   6,062,663       3,839,296       4,575,570
___________________________________________________________________________________
Shareholders' funds                      12,275,575       8,946,987       9,619,756
___________________________________________________________________________________


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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